CALGARY, Sept. 18 /CNW/ - Bow Valley Energy Ltd. (TSX - BVX) is providing
information on its short-term investment portfolio in light of recent issues
affecting the commercial paper market.
At August 31, 2007, Bow Valley had a portfolio of approximately
C$70.6 million in cash and cash equivalents, of which approximately
$30.1 million was held in accounts with various Canadian and international
banks. Approximately C$40.5 million was invested in Canadian asset-backed
commercial paper ("ABCP").
Bow Valley's investments in Canadian ABCP are issued by two trusts -
$24.0 million issued by Silverstone Trust and $16.5 million issued by Opus
Trust - both of which matured on September 13, 2007 and are now overdue.
Silverstone and Opus are two of the 22 third party conduits that are involved
in a proposed restructuring process aimed at providing a solution to the
liquidity problem affecting the conduits.
Bow Valley is unable to predict the timing or manner in which the ABCP
issues will be resolved. The Company believes that it has sufficient cash
balances and cash flow from operations, in addition to its current credit
facilities, to fund its planned operations during this period of market
uncertainty. The Company does not anticipate that the situation with its ABCP
holdings will curtail any activities related to the execution of its current
operating and capital spending program. The Company will continue to monitor
events relating to its ABCP investments and will update shareholders if and
Bow Valley Energy Ltd. is an oil and natural gas exploration, development
and production company with operations in Alaska and the U.K. sector of the
North Sea. The common shares of the Company trade on the Toronto Stock
Exchange under the symbol BVX.
Additional information relating to Bow Valley may be found on the SEDAR
website at www.sedar.com.
Certain statements included or incorporated by reference in this news
release constitute forward-looking statements or forward-looking information
under applicable securities legislation. Forward-looking statements or
information typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an outlook. Although the
Company believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be placed
on forward-looking statements because the Company can give no assurance that
such expectations will prove to be correct. Forward-looking statements or
information are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause actual results
to differ materially from those anticipated by the Company and described in
the forward-looking statements or information. The forward-looking statements
or information contained in this news release are made as of the date hereof
and the Company undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. The forward looking statements or information contained in
this news release are expressly qualified by this cautionary statement.
Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil equivalent at six
thousand cubic feet to one barrel of oil equivalent (6 mcf = 1 boe). This
conversion ratio is the convention used in the oil and natural gas industry
and is based on an energy equivalent conversion method primarily applicable at
the burner tip and does not represent a value equivalent at the wellhead. The
use of boe's may be misleading, particularly if used in isolation.
For further information:
For further information: Bow Valley Energy Ltd., Robert G. Moffat,
President and Chief Executive Officer, Matthew L. Janisch, Vice President
Finance & Chief Financial Officer, Phone (403) 232-0292, website: